Netflix reported third-quarter earnings of 87 cents a share, above the 82 cents analysts expected, on revenue of $12.87 billion, in line, on October 20. Revenue was up almost 12%, which Netflix attributed to membership growth and March price increases.

Netflix narrowed its 2026 revenue forecast to $51.1 billion, the low end of its earlier range and below the $51.2 billion analysts expected, per LSEG, and lowered its 2026 ad-revenue outlook to about $2.7 billion from about $3 billion, citing a slower rollout of some ad products. It expects last week's job cuts to reduce fourth-quarter operating margin by about 120 basis points.

"We know there's some investor concern about our view hours growth," the shareholder letter said, adding that engagement "remains healthy." The stock fell more than 5% on October 21, CNBC reports. Screen Daily notes India view hours rose 24% year over year.